Property managing agents should be regulated, minister is told

Property management agents should be legally regulated to protect people from rogue traders, the Government has been told.

Town & City Management managing director Peter Bigge has written to Business Secretary Vince Cable, pointing out that anyone can set themselves up in the property management business.

He says this can result in unscrupulous property managers overcharging, levying unexpected fee increases, failing to explain how the service charges are broken down and falling foul of complicated property legislation through lack of knowledge.

It is estimated that there are more than 1.8 million private leasehold flats in England and Wales. In a large proportion,  managing agents are employed to handle the day-to-day running and maintenance.

Bigge said: “This industry is no place for novices as the management of long leasehold residential property is complex.

“It requires an in-depth understanding of the structure and meaning of leases and a thorough knowledge of the statutory requirements of various landlord and tenant legislation. For instance, there are at least six key Acts of Parliament, along with scores of regulations that impact on this sector.

“In the wrong hands, property and block management can cost residents dear both financially and in terms of stress and hassle.

“It is time that a sector that has such a bearing on people’s lives should be legally regulated to make sure that unscrupulous operators are weeded out.”